Income Tax Budget 2024 Live Updates: Finance Minister Nirmala Sitharaman will present the interim budget for fiscal year 2024-25 on February 1, 2024. By definition, it will be a Vote on Account ahead of the Lok Sabha Elections scheduled later in April-May this year. Traditionally, the central government does not announce any significant reforms in the Votes on Account. "In Votes on Account, the tax structures and rates are generally not revised and significant changes to taxation are usually proposed in the subsequent full budget presented by the newly elected government," says Dr. Suresh Surana, Founder, RSM India. However, hopes are high from Sitharaman's last budget as middle-class taxpayers are eagerly waiting for some much-needed relief. More deductions in the new income tax regime, a hike in the standard deduction limit, and simplification of the capital gain tax regime are some of the demands of Indian income taxpayers from Budget 2024. 1) Tax deduction for contributing to NPS should be under the new tax regime, experts want: To make it more attractive, Budget 2023 introduced a standard deduction of Rs 50,000 in the new tax regime. Experts now want more deductions under the new income regime. One of the prominent demands is to allow tax deductions of up to Rs 50,000 for contributions towards NPS under Section 80CCD (1B) in the new tax regime. “The Rs 50,000 deduction that was allowed under NPS under Section 80CCD(1B) under the new tax regime, which was removed w.e.f. Apr 1, 2023, should be brought back in the budget for FY25. Going one step further, we would advocate that this limit should be increased to Rs 1,00,000, under both the tax regimes. This benefit under Sec 80CCD(1B) was quite popular with tax planners and largely played a key role in getting individuals investing into the NPS whether they were employed in the organised sector or otherwise,” said Kurian Jose, CEO, Tata Pension Management. 2) Hike Standard deduction limit in Budget 2024: The limit of standard deduction was last revised in 2019, an interim budget. Considering inflation and increased living expenses, it is high time that the central government hikes the limit of the standard deduction in Budget 2024, experts say. "There has been no increase in the standard deduction for a few years and considering the rising standard of living and usual associated costs, the amount of Rs 50,000, as standard deduction seems a bit low. An increase in this deduction, would help primarily the salaried employees who otherwise do not have any allowances for expenses, to be at par, as against those in case of business/profession or presumptive taxation," says Ritika Nayyar, Partner, Singhania & Co. "There is merit for the Government to consider an increase in the standard deduction limit from Rs 50,000 per annum to Rs 1,00,000 per annum," says Sonu Iyer, Tax Partner and People Advisory Services Lead, EY. 3) 'Budget 2024 must increase the limit of Section 80D': The cost of treatment for common ailments that require hospitalisation has more than doubled in five years. As the existing limit of Rs 25,000 under Section 80D that allows taxpayers to claim deductions for paying premiums for health insurance does not usually cover the average premium spent for health insurance, the insurance industry wants Budget 2024 to hike the limit. Budget 2024 date and time: FM Sitharaman will present the budget on February 1, 2024, at 11 am in the new Parliament building.